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USDCAD TECHS

Solid Bounce

AUDUSD TECHS

Reverses In Style

EURJPY TECHS

Accelerates Off Bull Trigger

USDJPY TECHS

Still Pointing Higher

EURGBP TECHS

Bouncing Well

GBPUSD TECHS

Bulls Press Pause

BMO analysts said "the most........>

US TSYS/RESEARCH
US TSYS/RESEARCH: BMO analysts said "the most important questions" for the 2018
US govt bond market "will be centered on inflation and inflation expectations.
We can envision 3 scenarios for realized inflation: 1) more of the same with
core-PCE gaining +0.10% to +0.14% on a monthly basis, 2) an acceleration of
inflation to average +0.14% to +0.20%, or 3) a material leg higher in inflation
to consistently print at +0.20% or above."
- They add that "in the first 2 outcomes, we suspect that the 2s/10s curve
pushes flatter: bullishly in the first case, and bearishly in the second. The
second scenario is our base-case, and we suspect that rather than ushering in
the triumphant return of term-premium to the Treasury market, the seasonal spike
of inflation so typical of the first quarter will embolden Fed tightening
expectations and further weigh on the front-end of the curve while leaving 10s
and 30s under only modest pressure."